Listing ID: 79115
High volume smart home services business based in Southern New Hampshire. Great opportunity to acquire a growing home services business that is highly recommended by it’s clients. It’s an ideal acquisition for a Company that provides services to residential customers and is seeking to increase it’s offering and revenues to new and existing customers. Or for a buyer seeking a stable business with tenured staff, a strong referral business and a long-term track record of success.
- Asking Price: $635,000
- Cash Flow: $180,000
- Gross Revenue: $1,269,000
- EBITDA: $180,000
- FF&E: $100,000
- Inventory: $200,000
- Inventory Included: N/A
- Established: N/A
The Business resides in a small freestanding building. It’s a visible location with heavy traffic flow of residents and commuters and is nearby intersections and roadways. The space is approximately 4000 +/- Square Feet. There is ample onsite parking for employees and patrons.
Seller is willing to assist in support and training.
There are very few direct competitors nearby.
The Business has a strong referral and repeat business. There are a number of opportunities for growth detailed in the confidential package.
The transaction doesn't include inventory valued at $200,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. However, the genuine factor vs the one they tell you might be 2 totally different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in incomes, or a variety of various other factors. This is why it is very important that you not depend completely on a seller's word, however instead, make use of the seller's response together with your overall due diligence. This will repaint a much more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that earnings margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new clients? Most times, businesses have repeat clients, which develop the core of their day-to-day profits. Certain elements such as brand-new competition sprouting up around the area, roadway building, and also employee turnover can influence repeat clients as well as negatively influence future incomes. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the better the possibility to build a returning client base. A final thought is the general area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the local average family earnings influence future income potential?